Hospital Management Software Development: Steps, Price, and Features

2337 Updated 09.15.2022
Vasyl Polych

Founder & CEO at Northell


Table of contents

A successful health institution comprises two parts: qualified employees and well-established management. Think about the complexity of any hospital environment. The entity’s whole operation is unachievable without a great hospital management system.

In this blog post, we will look at HMS (Hospital Management System), its most essential features, design and development process. We will share our experience in designing and developing this kind of product. 

You will learn how to create hospital management software that will be in demand. On the example of a project that our team worked on, you will learn how the process of creating a product is going on, what are the advantages of using hospital management systems, and much more. 

Hospital Management Software Development: Overview


hospital management software development

Before learning how to develop a hospital management system, let’s figure out what kind of system it is. Hospital management system is a system that gathers and combines data from various medical institution departments in order to automate the day-to-day internal activities. A hospital management system or HMS can be a cloud-based or standalone system.

According to Statista, the health management solutions market is estimated to grow to over 50 billion dollars by 2025. Hospital management systems are designed to make the work of hospital staff more manageable. It is helpful for:

  • routine work automation;
  • better staff communication;
  • communication with patients;
  • human resource management;
  • material resource management;
  • attaining a patient-centered approach.

Types of HMS

Depending on the functionality hospital management systems include, they might differ from one health institution to another. Nevertheless, we have identified some primary module types needed to develop a hospital management system. 

Remember that your system may be a collection of multiple modules with diverse functions created to meet your specific demands. Let’s take a closer look at them:

The administrative and clinical system

This system is required for all healthcare facilities. It provides patient information, reports and statistics. After entering patient data, the system generates a report. Also, using this module, hospital employees can view various statistics on diseases, attendance, etc.

The operational and tactical system

The operational system is used to classify medical information. It allows you to ensure reliable and fast work with data and identify inconsistencies in the system. Dedicated work with information will provide any hospital with the necessary base for quality work, both with patients and internal issues.

Task-based systems

The task-based system helps categorize work tasks. It automatically prioritizes and distributes tasks among staff depending on the current situation in the hospital. Such a system is focused on specific tasks (for example, hospital admission, hospital discharge, transfer to the operating room, etc.)

Subject-based systems

Subject-based systems are needed to store patient information digitally. Hospitals primarily use them to manage and keep complete digital patient histories. Compared to paper records, subject-based systems help avoid data duplication because all information is stored in a single file that changes over time.

Financial systems

Financial systems are responsible for managing the finances of a healthcare facility. These systems help keep track of waste and cash receipts. By using the financial system, hospitals control their budget.

How does HMS work on a practice?


Northell Case Study: CareSYNC

Knowing how hospital management systems work in practice is necessary to develop a hospital management system. Based on the CareSYNC project that the Northell team worked on, we will tell you the main points in the work of hospital management systems.

CareSYNC is a hospital solution that helps manage staff work and make it more organized.

The system is very easy to use and contains 4 main sections: Dashboard, Stuff, Alerts and Sequence. The Dashboard displays a list of doctors and rooms for each doctor’s responsibility. When patients are admitted to the hospital, their data is entered into the system. 

The Staff section displays a list of all hospital doctors, assistants and receptionists. This section contains detailed information about these personas (full name, e-mail address, phone number, etc.). 

The Sequence section is designed to assign a specific doctor to patients. The Alerts section is responsible for notifications. If any patient needs emergency assistance, this will be immediately displayed in the system. We will tell you more details about this project later.

What Hospital Management Software Development Includes?


Northell Case Study: CareSYNC

To develop a hospital management system, you should know what it includes. We have gathered the main sections to consider during hospital management system software engineering:


Any hospital management system should have a list of doctors and all detailed information (full name, phone number, mailing address, number of patients, etc.). It is also essential to include information about each doctor’s medical field, their experience, office hours, primary responsibilities, schedule of surgeries, etc.


The hospital management system should contain information about staff. It is necessary to add data about each hospital employee, their duties, working hours/shifts, the area of their work, etc. The more information you add, the easier it will be for hospitals to manage and control them.


It is imperative to add a section to the hospital management system that will contain information about each patient. The patient list should contain information about each patient, such as the date and time of admission to the hospital, symptoms upon admission, diagnosis, attending doctor, room number, medical history, history of surgeries, date and time of discharge, etc.

Laboratory results 

This section should include a list of patients and the results of all laboratory analyses carried out for each of them.


This section should contain detailed information about all medicines that are in hospitals (date of delivery, quantity, expiration date, field of use, side effects, etc.). This section will help keep track of medical stocks and other essential medical supplies.

Billing & Finance

All financial information (services payment, bills, salaries, etc.) should be stored here.


This section should contain all the hospital’s insurances (number of insurances, types of insurances, amount of insurances, insurance period, etc.).

Statistical reports

This section should display all reports and all hospital statistics. Depending on what you want to analyze, you can customize the statistics output. For example, you want to know about the number of successful surgeries performed over the last six months. You enter this section and see a report on the surgeries performed for the previous six months and their results. Then you can check statistics of successful and unsuccessful surgeries.

Ready-made vs. Custom Hospital Management Software Development?

Before delving into the hospital management system feature list and capabilities of each software kind, let us first define what they mean.

Ready-made hospital management system

It is a ready-to-use hospital management system that focuses on regular hospital operations. It is usually wholly created following the fundamental requirements of each hospital and is quite simple to implement.

It is appropriate for hospitals that want futuristic software at a low cost or require hospital management software immediately.

Custom Hospital Management Software Development

It is a customized hospital management system created from the ground up to satisfy the demands and requirements of diverse hospital operations. It is generally beneficial for hospitals with specific process needs and for hospitals that intend to create everything following their brand and rules.

Here are the main characteristics that distinguish a custom hospital management system from a ready-made one:


The customized hospital management system is unique because it is created from the ground up.


Because the system is designed from the ground up, it can be scaled and developed to meet the needs of the medical institution.


You may integrate as many third-party connections as you like in this system type. On the other hand, adding too many features might cause the system to slow down.

Deployment Time

The system goes through various creation, testing, and refining stages before reaching the deployment phase. Typically, it takes 6-12 months to complete. However, the result is well worth the time.

Hospital Management Software Development: Benefits


Northell Case Study: CareSYNC

Why should you develop a hospital management system? Here are the main benefits of hospital management system software engineering:

For Hospital

The new level of service

Hospitals that implement hospital management systems increase their competitiveness. In addition to good doctors, such hospitals can offer advanced services. They actually show customer care and a better level of patient service.

Automated processes

Hospitals are well-known for their intricate daily routines. The essential advantage of building a hospital management system is the automation and optimization of work operations. 

Reducing manual stages reduces hospital personnel’s stress and workload, while productivity and collaborative processes increase, providing a health institution with a long-term chance to compete. 

The freed labor force provides more flexible human resource allocation and reduces the number of people necessary for specific jobs.

Reduced costs

According to studies, administrative expenditures account for more than a quarter of all hospital spending in the United States. 

Develop a hospital management system that automates bureaucratic operations such as inventory and laboratory administration, as well as patient registration, to prevent some of these costs. As a result, a hospital uses fewer work hours to do the same work.

Strategic development

The presence of a hospital management system in a clinic facilitates the management and direction of business processes inside the medical institution. 

This system is pretty helpful in developing and implementing strategic decisions to boost company efficiency and profits. 

It is more challenging to see the big picture and navigate the administrative fog without a hospital management system.

For Patients

Improved patient experience

Increasing the consistency, scalability, and dependability of the hospital management system improves patient care and experience, making healthcare operations substantially more efficient.

Proper data management can help avoid complications like delayed care for people who need immediate medical attention. 

As a result, the hospital management system will increase the effectiveness and appeal of healthcare services to their target audiences: physicians and patients.

Data security

The medical industry has long recognized that hospitals that employ manual management systems are more vulnerable to data breaches and information theft than those that use digital management systems. 

A full-fledged hospital management system protects all data from unwanted access down to the last megabit. 

The access-control system removes the possibility of an error, which increases the likelihood of unauthorized access to sensitive information, which is the major reason for the current increase in the frequency of hospital management systems.

For Doctors

Reduced workload

Medical employees are continuously under pressure, which may rapidly lead to burnout. The hospital management system reduces stress and workload by automating activities like paperwork and inventory management, which are areas where employees spend a significant amount of time on a daily basis. As a result, hospital employees are more productive and engaged.

Hospital Management Software Development: Feature List for Patient

How to create hospital management software that is user-friendly for patients? We will answer this question by describing patients’ critical hospital management system feature list.

Patient registration

What is the first thing a person does when they get to the hospital? Go through registration! Any hospital management system feature list should include patient registration. This process can be made quick and easy. It is enough to add the functionality that allows registering the patient in the hospital management system. 

Using this feature, the receptionist will be able to quickly enter all the necessary information about the patient into the system. Then doctors and hospital staff can quickly find and analyze patient data.

Insurance services integration

For patients to use their insurance, add the ability to integrate insurance services into the hospital management system. This feature will help patients cover the cost of treatment right away using their insurance.

Patient billing

Using the patient billing feature, patients will be able to immediately pay for their treatment without wasting time on additional actions (from relatives, for example). The patient billing feature means that the patients will instantly receive payment receipts and track what services they paid for and what they didn’t.

Emergency care module

It is probably the most important feature for patients. Imagine the patient felt bad suddenly but couldn’t call someone for help. The patient, using this feature,  will be able to reach doctors in a few seconds, and they will help him. This feature, without exaggeration, can save many lives.

Patient notification

This feature will allow patients to receive notifications. For example, they will be able to receive a reminder to take medication or a notification with laboratory test results.

Pharmacy information, booking, and purchase for patients

Patients, using this feature, will be able to get information about the medications they are taking, make an appointment with a doctor, as well as buy things they need.

Helpdesk & support

It is a standard feature in any hospital management system feature list. With its help, patients will contact the support service and get answers to their questions if any arise.

Hospital Management Software Development: Feature List for Doctors


Northell Case Study: CareSYNC

Here are some important features for doctors that you should consider during hospital management system software engineering:

Task system

This feature is needed to distribute tasks between doctors and prioritize them. Using this functionality will make the hospital staff more organized and controlled.

Patient management

Patient management is extremely important. This feature will allow the hospital’s staff to maintain precise control over patients and receive the necessary detailed information in a matter of minutes. 

Very often, there are emergencies in hospitals that require an immediate response. Thanks to this function, doctors will be able to clearly assess each patient’s condition and ensure that the treatment is timely.

Laboratory and tests management

Thanks to this feature, obtaining laboratory results will be automated. Doctors no longer have to walk through the hospital to the lab to collect printed test results. They will be able to receive them on their tablets or computers immediately after they are ready.

Patient admittance information

Doctors using this feature will be able to keep records of patient admissions, and all the main information will be in quick access. Have you ever faced a situation when you came to a doctor, but he couldn’t find your card? Or were you told that your visit was not booked and that you should come another day? By adding this feature to the hospital management system, such situations can be avoided.

Remote Patient Monitoring

Thanks to modern technologies and hospital management systems, it has become easier for doctors to monitor remote patients. The remote patient monitoring feature will allow doctors to monitor patients’ health who are being treated at home. They will be able to send them a  prescription to take medications, receive the necessary test results, and immediately respond if the patient’s medical condition worsens.


This feature can be used in different ways. Let’s look at some examples:

Examples of doctor-patient interactions include transmitting test results or medical reports and consultation with a doctor.

Examples of doctor-doctor interaction: the use of electronic information, integrated digital and telecommunication technologies for the exchange of data between doctors, as well as for management in the field of medical education, healthcare and medical services.

Electronic Health Records

An electronic health record contains patient health information, such as:

  • administrative and billing data;
  • patient demographics;
  • progress notes;
  • vital signs;
  • medical histories;
  • diagnoses;
  • medications;
  • immunization dates;
  • allergies;
  • radiology images;
  • lab and test results.

Agree, when all the information is in one place it is very convenient!

Hospital Management System feature list for Management


Northell Case Study: CareSYNC

How to create hospital management software that will help manage employees? We have compiled a list of important features for management.

Staff Management

Of course, the hospital management system feature list should include a staff management feature. This feature will help organize employees’ work and monitor all the necessary processes in the hospital.


It is an integral part of any business. This hospital management system’s module is needed to keep track of expenses and incomes, the issuance of salaries, bonuses, etc.

Facility management

This feature is needed to control the use of various premises in the hospital.

Inventory management

Hospital employees, using this feature, will be able to keep a clear record of hospital inventory, namely the supply of the necessary medicines, furniture, tools, etc.


This feature will allow employees to mark the arrival time and leave from work. 

Northell Experience in Hospital Management Software Development

Northell team has extensive experience in hospital management system software engineering. We know how to develop a hospital management system that will be a great solution for both doctors and patients. 

We mentioned earlier that we were working on the CareSYNC project, a hospital solution that helps manage staff work and make it more organized.

CareSYNC needed a user-friendly platform design and high-quality development. The main users of the platform are administrators, receptionists, doctors and doctors’ assistants. Our main task was to make the platform design in such a way so that each user could understand how to work with the platform and feel comfortable.

Northell team created the UX/UI design for the platform. We made the platform universal. Therefore, many hospitals can use this solution with the possibility of custom adjustment. We also developed a responsive design (for mobile and tablet users). Since most doctors work using tablets, responsive design was a must.

If you are planning to develop a hospital management system, don’t hesitate to contact us! We will help you with all stages of hospital management system software engineering. Visit our Healthcare software development page to know more about services we offer.   

Hospital Management Software Development : Tips from Northell

How to create hospital management software and be successful? In addition to the hospital management system feature list we described above, our team has prepared some useful tips to help you achieve good results in creating a hospital management system.

Build a great UX Design

Want to develop a hospital management system that will attract many companies and users? Think about UX! Why is good UX so important? User experience refers to how a person feels when interacting with a product. 

For the web interface, this is the ease of orientation and the perception of value through the content. UX design is a complex system that considers every detail: from the ease of filling out the application form to the intuitive structure of the sections.

It is vital for hospitals that the hospital management system is clear and easy to use. Employees and patients do not have to spend a lot of time searching for the module or the button they need.

Don’t skimp on analyzing your processes

Why shouldn’t you skimp on analysis? Everything is very simple! If you save on analysis now, then in the future, if you make mistakes, you will spend many times more money on correcting them. Analyzing your processes to make them better and find the best solutions is essential.

Security is important

Remember, medicine is a field where data (especially patient data) must be completely safe. To avoid data leakage, provide your hospital management system with a sound security system.

How To Develop Hospital Management Software? Main Steps

Now let’s talk about the process of creating a hospital management system. We have prepared a step-by-step guide to help you determine what basic steps you need to go through to develop a hospital management system.

Product Idea and Goals

Every product starts with an idea. It is not enough to just want to build a hospital management system. It is essential to describe your idea with all the details and components.

Next, you should decide on your goals and the goals of your product. Why are you creating this product? What result do you want to get? What is the purpose of the product? It will be easier to organize the hospital management system software engineering process by answering these questions.

Write software requirements

Writing a document with requirements is one of the main preparatory stages. This document is needed to follow the plan clearly. Also, it will be easier for your design and development team to figure out what kind of product you want to get as a result.

Usually, the requirements (specifications) document includes the following things:

  • full project overview;
  • main needs and goals;
  • target audience;
  • functional requirements;
  • hospital management system feature list;
  • aesthetic aspects;
  • non-functional details;
  • recommendation and prohibitions;
  • questions.

You can read more about software requirements in our article How To Write The Design Specification? [Quick Guide].

Select Vendor Team

To develop a hospital management system, you should first find an appropriate vendor for your product. You may learn about the software company’s qualifications by visiting its website and reviewing its portfolio. An experienced development firm with a track record of comparable projects and adequate resources would be the ideal choice to work on your project.

Also read: How to Hire a Dedicated Software Development Team?

Product Discovery/BA

Product discovery includes drawing up the business logic of your product and competing research that will help you create a solution that will outperform other players in the market. You also need to determine what problem your product will solve, whether people will buy and use your product and whether your solution will work.

The more information you collect and prepare at this stage, the easier it will be for your design and development team to understand what kind of product they need to create. It will also increase the likelihood that you will be able to create a truly valuable solution.

You should also do business analysis. Business analysis is a detailed assessment of the prospects for the commercialization of a new product concerning the initial investment. In simple terms, a business analysis allows you to assess how profitable the development of a new product is, how quickly it will pay off, and how much income it can generate.

UX Design

Next, start creating UX design. How to create hospital management software that will be user-friendly? We mentioned earlier that UX is vital for any product. Here are 6 steps to successful UX design: 

Study the users. The first step is to understand exactly who you are designing for. There are many methods to get information about your users. Combine quantitative and qualitative analytics and feedback data. Only by understanding your users’ goals, needs, and desires can you create an effective design for them. 

Personas layout

Northell Case Study: Personas

Define scenarios. Next, based on your research, be clear about what you (or rather your users) are trying to achieve. Create the perfect journey map for your client and identify any possible barriers on the way. Define as many scenarios and uses as possible for your product/service. 

Formulate an idea. Gather together all the collected information and start brainstorming. Create a storyboard or mood board to visually convey the problem you are trying to solve. 

Create a prototype. Prototyping is the most effective way to bring your idea to life even before the development stage. Lay out a mock-up of the interface with all its important components on paper, and then ask as many people as possible to replay the script. This process will help you identify any potential barriers or unexpected user behavior that you may have overlooked. 


Northell Case Study: CareSYNC

Test it. Testing is vital for UX design. It doesn’t have to be a long, laborious process. According to the Nielsen Norman Group, 85% of all problems on your site can be detected by just 5 users.

Repeat steps as needed. Depending on your testing results, you may need to go back to the idea stage and find some other alternative solutions. The UX design process is iterative: some steps need to be repeated to achieve the desired result.

UI Design


Northell Case Study: CareSYNC

How to create hospital management software that will be visually attractive for users? The UI is focused on making the user experience a pleasant experience. UI design is all the elements that the user sees and interacts with.

For example:  

  • buttons; 
  • text fields; 
  • checkboxes; 
  • sliders; 
  • search bars; 
  • tags; 
  • icons.

Front-end Development

The term “front-end development” refers to the production of the application’s user-side, which includes the screens, interface, and everything the user will interact with.

Hiring an outsourced software development agency makes it simple to design your hospital management system. You will access qualified developers who will do the job faster and more efficiently. Information about how to hire a great front-end developer you can find in our article How to Hire React js Developers: Step-by-Step Guide.  

Back-end Development

Back-end development comprises primarily creating the server and database for your desktop-based application.

It demands the involvement of a qualified back-end developer or someone knowledgeable about database planning and structuring as well as website development services.

All functionality such as alerts, sign-in, and transactions will be developed during this phase. Information about how to hire a great back-end developer you can find in our article Hire Node.js Developer: Short Guide for Hiring


How to create hospital management software without any bugs and mistakes? Once your product is ready, you need to test everything thoroughly. Testing will help you identify errors and problems at an early stage and fix them in time. Also, testing will help you understand how well your design is understandable and convenient for users.


When you have successfully gone through all stages, it is time for implementation. 

Do you think this is the end? The work on the product has just begun! There are still many iterations ahead of you, and you need to be prepared for this.  

After the product’s release, your task is to collect feedback from the first users quickly. How to do it? For example, conduct a survey or interview. After receiving feedback, it will be clear what needs to be changed: something will have to be added, and something will have to be permanently removed.

Don’t be discouraged if your product gets a lot of negative reviews – this can be used to improve your product. 

Develop Hospital Management Software: Cost & Timeline

How to create hospital management software and not lose lots of money? To do this, you need to know how much the hospital management system can cost and how long the development can take before starting product development.

The cost of hospital management system software engineering can vary greatly depending on the direction of the business and the required functionality, so it is impossible to give an exact development figure.

However, we have compiled a table of approximate prices for different stages of hospital management system software engineering, depending on the country where the design and development team is located.

Rough project costs

Rough project costs

Let’s also consider how long it takes to create hospital management software. For your convenience, we calculated how much time each stage of hospital management system software engineering will take for different sizes of businesses: 

Product discovery:

Enterprises: 60-120 hours.

Middle-size project: 30-60 hours.

Small projects: 15-30 hours.

UI/UX design:

Enterprises: 100-250 hours (UX), 200-300 hours (UI).

Middle-size project: 60-100 hours (UX), 55-110 hours (UI).

Small projects: 30-45 hours (UX), 25-50 (UI).


Enterprises: 20-50 hours (technical documentation), 250-500 hours (frontend), 300-600 hours (backend). 

Middle-size projects: 12-25 hours (technical documentation), 120-200 hours (frontend), 130-210 hours (backend).

Small projects: 8-10 hours (technical documentation), 70-90 hours (frontend), 80-100 hours (backend).


Enterprises: 80 hours.

Middle-size projects: 40-80 hours.

Small projects: 40 hours.

Having this information in mind, you can calculate the approximate development cost and timeline of the entire project.

 Hospital Management Software Development: Summary

A growing number of hospitals are switching their business activities to digital technology. The hospital management system automates a healthcare business’s workflow and data operations. Contact us to create your desired product and design an online clinic management system from scratch.


Is it possible to start with MVP?

Yes, you can start with MVP. If you need help building an MVP, contact us! We will be happy to help you create a great solution.

How to properly implement the system?

Here are some highlights:

It is necessary to competently connect all other services and processes in the hospital with the hospital management system.

Staff should be taught to use the system. That is, you need to organize good onboarding.

Implementation should be gradual. We recommend, for example, starting with one separate department.

Which technology stack should be used?

We recommend using React and Node.js.

What are the rules in the US and Europe?

If we are talking about the USA, this is primarily HIPAA (Health Insurance Portability and Accountability Act)/HITECH (Health Information Technology for Economic and Clinical Health) and FDA (Food and Drug Administration) compliance.

If we consider Europe, this is first and foremost GDPR (General Data Protection Regulation) laws you should obey.

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